Cesar2000-Economics of Coral Reefs.pdf

Ecological Economic Decision Support
Modelling for the Integrated Coastal
Zone Management of Coral Reefs 1
KENT GUSTAVSON & RICHARD M. HUBER
ABSTRACT
Ecological economic decision support models can play a critical
role in the development of effective integrated coastal zone
management (ICZM) policies and programs. In 1995, work
commenced under World Bank Research Committee funding
on two streams of research concerning coral reefs in the
developing tropics: i) cost-effectiveness modelling of management
interventions (i.e., a question of the ‘supply’ of biodiversity
as an economic asset); and, ii) marine system valuation (i.e., a
question of the ‘demand’ for biodiversity). Three case study
sites were selected on which to test the methodologies: i)
Curaçao, the Netherland Antilles; ii) the Republic of the
Maldives; and, iii) Montego Bay, Jamaica. Marine system
valuation for Montego Bay included local use values, utility
values, and the potential contribution of coral reef biodiversity
valuation toh the development of bioprospecting ventures. In
addition, a description of the socio-economic context of the
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This chapter summarizes the results of five years of research supported
by the World Bank Research Committee, and from Trust Funds from
the Netherlands, Sweden and Canada administered by the World
Bank. The research was done under the direction of Richard M. Huber
(World Bank), task team leader, with input from numerous researchers
as referenced throughout this chapter. Primary input was provided by
(in alphabetical order) Rolf Bak (Netherlands Institute of Sea Research),
Steve Dollar (University of Hawaii), Kent Gustavson (Gustavson
Ecological Resource Consulting), Erik Meesters (Netherlands Institute
of Sea Research), Frank Rijsberman (Resource Analysis), Jack
Ruitenbeek (HJ Ruitenbeek Resource Consulting), and Susie Westmacott
(Resource Analysis). This summary was prepared by Kent Gustavson
and Richard M. Huber.
Montego Bay Marine Park, as well as policy and management
advice with respect to rent capture and the development of a
bioprospecting program, were included as part of the analyses.
Further research and refinements of the models, along with
greater attention to the process of decision-making and policy
development, should be seen as necessary challenges of future
advances.
1. INTRODUCTION
Coral reef ecosystems throughout the world are in serious
decline, being threatened by both localized anthropogenic
stress as well as regional and global phenomena
such as global warming (e.g., Jameson et al. 1995;
Bryant et al. 1998; Wilkinson 1998; Hodgson 1999;
Hoegh-Guldberg 1999). Although there are limitations
to what can be done on the local level to mitigate the
impacts of regional and global phenomena, it is clear
that effective integrated coastal zone management
(ICZM) is necessary to help prevent further depletion
due to localised impacts. This chapter serves to summarise
the results of the research regarding the development
of ecological economic decision support models for the
management of coral reefs in the developing tropics.
Also, comments are offered regarding potential policy
applications and future directions for research.
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